Vodafone Qatar Q.S.C Financial Results. Press Presentation. For the 9 months ended 31 December January 2012

Transcription

1 Vodafone Qatar Q.S.C Financial Results Press Presentation For the 9 months ended 31 December January

2 2 Disclaimer The following presentation is made only to, and is directed only at, persons to whom such a presentation may lawfully be communicated ( relevant persons ). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. This presentation contains forward-looking statements that are subject to risks and uncertainties, including statements about Vodafone Qatar s beliefs and expectations. These forward-looking statements are based on assumptions that Vodafone Qatar has made in light of its experience in the industry in which it operates, as well as its perceptions of historical trends, current conditions, expected future developments and other factors which Vodafone Qatar believes are appropriate under the circumstances. Prospective investors should understand that these statements are not guarantees of future performance or results. Due to these factors, Vodafone Qatar cautions that prospective investors should not place undue reliance on any forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise from time-to-time, and it is impossible to predict these events or how they may affect Vodafone Qatar. Vodafone and the Vodafone logo are trademarks of the Vodafone Group. 2

3 3 Agenda Key highlights Q3 FY12 financial review Commercial and strategic progress Q&A 3

4 Key Highlights For the 9 Months ended 31 December ,000 Mobile Customers 12% growth QR 906m Total Revenue 39% growth QR 102m EBITDA 11% EBITDA margin QR (57)m Distributable Profits 63% improvement 4

5 5 Main Activities for the Quarter October November Stop the clock 3/30 BlackBerry on Red New mobile internet rate Double Topup offer BlackBerry on Red Stop the clock 3/30 MI Rack SMS campaign only December National Day Activities iphone 4S Launch Al Sadd Sponsorship 5

6 Q3 FY12 Financial Review Steve Walters Follow this code to view our Investor Relations web page 6

7 Mobile Customer Growth Year-on-Year Growth in Mobile Customers and Mobile Customer Market Share 25.3% 711 * % 354 Dec-09 Dec-10 Dec-11 Total Mobile Customers Mobile Customer Market Share 12% growth in Customer Numbers year-on-year 7 * Customer numbers reflect an adjustment of 46,000 to remove pre-activated SIM cards from the base following a technical systems upgrade. On the same basis, September 2011 customer base would have been 782,000

8 Total Revenue Year-on-Year Total Revenue Comparison 22.7% % mths to Dec-09 9mths to Dec-10 9mths to Dec-11 Total Revenue 9mth Quarterly Mobile Revenue Mkt Share 39% growth in Total Revenue year-on-year Nine-month ARPU is QR 111 (1.4% decline year-on-year) Adjusted nine-month ARPU of QR 113* generates a 0.4% increase year-on-year 8 * Adjusted ARPU reflects the underlying impact of the adjustment to customer numbers

9 EBITDA Year-on-Year EBITDA Comparison 102 (31) (186) 9mths to Dec-09 9mths to Dec-10 9mths to Dec-11 EBITDA Margin -86% -4.7% 11% Nine-month EBITDA margin of 11% 9

10 Net Loss & Distributable Profits Year-on-Year Comparison 9mths to Dec-09 9mths to Dec-10 9mths to Dec-11 (238) (155) (57) (359) (496) (457) Distributable Profits (Net Loss plus Amortisation) Amortisation (Nine-Month Amortisation of the QR 7.7bn license fee is QR 303 million) 63% improvement in Distributable Profits year-on-year 21% improvement in Net Loss year-on-year Annual Distributable Profits is the measure on which dividends will be based 10

11 Capitalised Fixed Asset Additions QR 396m Fixed Line Mobile FY 09 FY 10 FY 11 9mths to Dec- 11 Q4 FY12 Management forecast for Q4 FY12 Capital Intensity n/a 145% 51% 28% 50% 32% Long-term total capital intensity expected to stabilise at 10% of revenue from FY15 onwards. 11

12 Net Debt Borrowings less Term Deposits Dec-09 Dec-10 Dec-11 (42) (429) (737) D/E ratio of 11% at 31 December 2011 (this would be 17.9% if the total borrowing facility was fully utilised) We have a borrowing facility of US$ 330m (QR 1.2 billion) comprising: US$110m (QR 400m) at 1mth US Libor %; matures 2 April 2012 US$120m (QR 437m) at 1mth US Libor %; matures 3 May 2014 US$100m (QR 364m) at 1mth US Libor %; matures 1 June 2018 This is the total funding expected to deliver our current mobile & fixed 5 year plan 12

13 Commercial and Strategic Progress Richard Daly 13

14 Short Term Business Priorities Full network coverage and quality improvements Postpaid launch Roaming customer experience Business segment launch Fixed line broadband in partnership with QNBN Qatarisation 14

15 Network Improvements 497 outdoor & 123 indoor cell sites Coverage: 100% 2G and 99% 3G population coverage Drive Test Independent test by P3 Communications 4,500 KMs covered / 3,040 calls made Call set-up success rate: 98.9% Dropped call rate: 0.2% : data download 2.38 Mbps Next Steps 50 additional cell sites by 31 March Improved network stability and data speeds 15

16 Data growth We are seeing significant growth in mobile data usage in Qatar Consumption has doubled in 5 months Total Vodafone monthly data usage Data Terabytes May Jun Jul Aug Sept Oct Nov Dec More than 50% of our customers access the internet on their mobile every month More than 250,000 customers use Facebook on their mobile every week The Vodafone network has sufficient capacity and offers excellent download speeds 16

17 Fixed Line Services Qatar s Fixed Line market is worth QR 1.9 billion annually Vodafone core network fixed/mobile convergence is now complete This week we have completed the fibre connection between our two data centres at Meeza and QDC Next step is to connect to our International Landing Station (ILS) and provide international capacity in partnership with GBI By the summer our fibre ring backbone will be complete We currently offer fixed line services at The Pearl This will be followed in 2012 by Barwa City, West Bay CBD and then a nationwide roll-out as QNBN delivers last mile connectivity Project is on track and within our licence obligations 17

18 Opening of Qatar Call Centre in Doha 14 Qatari nationals recruited in our Doha call centre Will handle queries from local Qatari customers following full opening Full opening in February 18

19 19 Questions

20 20 Appendices

21 Condensed Statement of Income nine months ended 31 December 2011 Nine Months Ended December 31, (Unaudited) (Unaudited) QAR 000 QAR 000 Revenue 906, ,976 Direct costs (424,546) (323,124) Other expenses (379,396) (359,712) EBITDA 102,131 (30,860) Depreciation (138,420) (104,894) Amortisation of licenses (302,880) (301,954) Interest income 4,881 3,320 Financing costs (25,151) (22,424) Loss before taxation (359,439) (456,812) Income tax expense - - Loss for the period (359,439) (456,812) Basic and diluted loss per share (QAR) (0.43) (0.54) Interim Condensed Statement of Comprehensive Income Nine Months Ended December 31, (Unaudited) (Unaudited) QAR 000 QAR 000 Loss for the period (359,439) (456,812) Other comprehensive income (Loss)/gain arising from cash flow hedge during the period (21,896) 17,196 Total comprehensive loss for the period (381,335) (439,616) 21

22 Condensed Statement of Financial Position as at 31 December 2011 December 31, 2011 March 31, 2011 December 31, 2011 March 31, 2011 (Unaudited) (Audited) (Unaudited) (Audited) QAR 000 QAR 000 QAR 000 QAR 000 Non-current assets Equity Property, plant and equipment 1,276,219 1,161,201 Share capital 8,454,000 8,454,000 Intangible assets 6,651,217 6,954,098 Legal reserve 11,442 11,442 Accumulated losses Trade and other receivables 7,191 5,668 Accumulated other Total non-current assets 7,934,627 8,120,967 comprehensive income (2,112) (1,766,467) 19,784 (1,407,028) Current assets Total equity 6,696,863 7,078,198 Inventory 12,990 11,496 Trade and other receivables 159, ,314 Non-current liabilities Cash and cash equivalents 77,039 83,261 End of employment benefits 6,850 4,707 Total current assets 249, ,071 Provisions 10,315 8,604 Total assets 8,184,084 8,416,038 Long term borrowings 415, ,672 Total non-current liabilities 432, ,983 Current liabilities Short term borrowings 398,936 - Trade and other payables 656, ,857 Total current liabilities 1,055, ,857 Total liabilities 1,487,221 1,337,840 Total equity and liabilities 8,184,084 8,416,038 22

23 Financial Summary Financial Performance 23 Jun to 9mths to 9mths to 9mths to Dec-08 Dec-09 Dec-10 Dec-11 QRm QRm QRm QRm Total Revenue (Fixed & Mobile) EBITDA (Fixed & Mobile) (45) (186) (31) 102 Net Loss (Fixed & Mobile) (40) (496) (457) (359) Capitalised Fixed Asset Additions (Fixed & Mobile) Free Cash Flow (Fixed & Mobile) 1 (62) (315) (122) (113) Key Performance Indicators (KPIs) Dec-08 Dec-09 Dec-10 Dec-11 Total Mobile Customers - 354, , ,000 Qatar's Population 1.554m 1.632m 1.637m 1.708m Qatar's Mobile Penetration 108% 152% 172% n/a * Mobile Customer Market Share n/a 14.3% 25.3% n/a * Quarterly Total Mobile Revenue Market Share 2 n/a 16.1% 22.7% n/a * 1 Excludes mobile licence payment made in May Revenue market share is based on Vodafone Qatar s total mobile revenue (in which content revenue is reported as net) versus Qtel s reported postpay, prepay and other mobile revenue. * Data is not available as Qtel s December quarter results are not yet available 23

24 24 Vodafone Qatar Shareholder Structure Private institution of public Utility founded by HH Sheikh Hamad Bin Khalifa Al-Thani Global Telecommunications leader 49% 51% Vodafone and Qatar Foundation LLC 45% Vodafone Qatar QSC Authorized Share Capital: 845,400,000 (Shares) Paid Up Capital: QAR 8,454,000,000 Free float on Qatar Exchange 55% Number of Free Float shares: 464,970,000 No foreign ownership restrictions Free Float ownership split at 31 December: Institutional Investors: 62% Individual Investors: 38% 24

25 25 Contact Details Rachael Mayo-Smith Head of Investor Relations M E rachael.mayo-smith@vodafone.com Steve Walters Chief Financial Officer M E steve.walters01@vodafone.com Khalid Barzak Investor Relations Manager M E khalid.barzak@vodafone.com Address: Vodafone Qatar PO BOX Doha, Qatar Website: 25